“We’re so excited about our widget that we’ll send you a second one FREE (in hushed breath), just pay additiona processing and handling.”
Have you noticed that most of the $19.95 items on those tv commercials and infomercials are small and light weight. That means, to put them in a parcel post box and ship to you probably pay $6.95 (or more) for ‘processing and handling’.
Using the zip code 10001 from New York City to 90001 to Los Angeles, CA, the rates to ship that package would be:
$2.41 media mail (books and how to materials could go this way)
$2.90 1st class mail (2-3 days)
$5.41 parcel post
$5.00 small Priority Mail flat rate box
If the “retail” price of an item is $19.95, the COST to the vendor was probably about 10% of that – $1.95. Several of the items advertised on TV are very similar to fundraising merchandise with which I am very familiar as a $10 item on a fundraising brochure. That $10 item on the fundraising brochure cost ME about $2-$2.50 with most import-type widgets closer to the $2 mark.
Sooooo …. sending you the 2nd widget will cost the vendor $2 plus shipping, but YOU are paying “Processing” at $6.95…..so they make another couple bucks on that.
With that math the cost to the vendor is @$7 and you pay $19.95 + $6.95 + 6.95 = $33.85. Total vendor profit = $26.85.
“May I send you a 2nd item FREE?”
Thanks for reading,